Cash management

Liquidity management aims to guarantee your company's ability to meet its payment obligations. An important element is efficient cash management. Nordea offers a number of solutions for the needs of companies of different sizes.

Efficient cash management

Efficient cash management requires that the related decisions can be made systematically and quickly, when necessary. In addition, companies should pool their funds efficiently. They must also ensure that their cash management gets correct, up-to-date information on forecasted cash flows and bank account balances.

The funds may be pooled with a group account service or with automatic transfers to one account. This means utilising the other fund-pooling services.

These pages and links provide further information on how you can arrange your company's cash management in an efficient manner.

Your benefits:

The group's liquidity management becomes more efficient.

The need for external financing and the financing costs will decrease.

Group account

Group account offers versatile benefits for your business. Your business can focus the entire group's assets by currency in Nordea.

Group account's balances are always up to date. The browser based service allows you to view the group's liquidity quickly and conveniently from the group's main account.

Your benefits:

Overview of the groups liquidity is available and known at all times.

The net interest returns are increasing.

The consolidated balance sheet's total decreases.

Asset transfers inside the group are realised without losses.

Features

The group account structure will be tailored to the needs of your company. The structure may contain an infinite number of accounts of group companies. They can be flexibly grouped into entities by business area.

A group account is usually in the name of the parent company and the parent company owns the funds in the group account. Group units use the group account through access accounts. Account transactions are entered into access accounts and the corresponding change can be immediately seen in the available balance of the group account.

You can define the interest terms and conditions, limits and cover control rules of group companies and adjust them to your company's changing needs.

Multiple currencies

You can process multiple currencies with a group account if you choose an additional feature with which the group account's funds in different currencies can be used across different purposes.

The group's common funds are available to all the group companies within the agreed rules. You get additional flexibility when a limit is added to the group account.

This will further improve liquidity and the efficiency of cash management.

Pooling of funds

Zero Balancing

Zero Balancing is a service with which a company's funds are pooled into one account. The service functions between the accounts of Nordea Bank Finland. Zero Balancing transactions can be made between cheque accounts or between foreign currency accounts. The transactions are made automatically at the end of every banking day.
The service suits situations in which there is a regular need to pool funds into one account, but a group account is not yet topical.

Sweeping

The sweeping service can be used for automating recurring fund transfers within the group. The transfers can be made from one Nordea Bank Finland account to another or abroad.
Sweeping offers various options for fund transfers indicating the frequency and time of the transfers.

Global Cash Concentration

With this service, you can pool funds from foreign banks to Nordea.

Cash management reporting

Cash-management-report

Cash management reporting includes both forecasts drafted in the company and account statements, daily transaction statements or advance information on incoming foreign currency payments from the bank.

The basic condition of efficient cash management is that the company forecasts incoming and outgoing payments. The reporting can be carried out traditionally with spreadsheet programs, by utilising the company's financial administration programs.

Reporting also includes different kinds of interest reports because the success of cash management can be assessed based on the information in them.

It would also be advisable to examine the success of forecasting cash flows, and good cash management practices will enable this post-evaluation as well.

Interest reports

The interest calculations of the group account service are available daily and are always up to date, because transactions made with back values will constantly be updated on the interest calculation.

Your company can use interest reports to examine the success of its overall cash management both externally and internally. In addition, various interest terms and conditions can be examined by means of summary reports.

All interest reports can be printed and transferred to spreadsheet programs.

The account statement is an official certificate of the transactions and balances in your account. In addition to the account statement, your company can choose various electronic reports that enable automatic updating of transactions.